Managed Energy Service Agreement
A Managed Energy Service Agreement (MESA) is a variation of an Energy Service Agreement (ESA). In an ESA, the provider develops, finances, owns, operates, and maintains all energy efficiency measures and equipment installed during the term of the project. A MESA differs from an ESA because the provider also assumes the broader energy management of a client’s facility, including the responsibility for utility bills, in exchange for a series of payments based on the customer’s historic energy use. MESAs offer promise for retail energy retrofits when the customer is financially stable, but lacks the expertise or time to undertake the energy efficiency retrofit.
MESAs are contracts under which a third-party energy efficiency contractor assumes the energy management of a client’s facility, including the installation of energy efficiency upgrades and responsibility for utility bills, in exchange for a series of payments based on the customer’s historic energy use. MESAs offer a turn-key energy retrofit and financing approach that limits upfront costs and management burden.
